The luxurious Model S sedan and Model X crossover helped start the conversation around Tesla, but the $35,000 Model 3 hopes to be the car that brings electric vehicles to the mass market.
In a series of tweets Wednesday, Tesla Motors CEO Elon Musk announced that preorders for the Model 3 would begin in March 2016, with production starting in two years. Musk said that Tesla's Gigafactory must be operational for Model 3 production.
This news confirms previous reports that Tesla would unveil the Model 3 in March 2016, though it doesn't necessarily mean that this timeline would be followed strictly. The Model X SUV was initially supposed to launch in 2013 after a February 2012 debut, but the first preorder customers were only able to configure their cars Tuesday.
@elonmusk $35k price, unveil in March, preorders start then.— Elon Musk (@elonmusk) September 2, 2015
Last month, Tesla raised $738 Million selling stock in an effort to raise money for the Gigafactory and the Model 3. Elon Musk personally bought $20 Million worth of stock as part of the sale.
Meeting demand has always been a challenge for the fledgeling automaker, and with nearly 20,000 preorders for the Model X in the U.S. alone, a challenge that won't go away any time soon. A car like the Model 3, which is designed to take Tesla to the mass-market, will require considerable manufacturing strength to meet demand.
The Model 3 will come in a variety of body styles, including sedan and crossover SUV, and will have a 200 mile range. The price of $35,000 is before government subsidies, but one can reasonably assume higher-spec Model 3s will be more expensive.
While Tesla has been applauded for the quality of its luxury cars, Elon Musk has gone on the record saying that the Model 3 will achieve Tesla's primary goal of bringing a viable electric car to the mass-market. It's Musk's Volkswagen, if you will.
True, but achieving a long range affordable electric vehicle has always been our long-term goal. Due in late 2017! https://t.co/2OrIYdoojs— Elon Musk (@elonmusk) August 22, 2015
Musk also hinted that a successor to the Roadster will be coming in four years, complete with a "Maximum Plaid" option; a reference to Spaceballs and the Ludicrous Mode now offered in the Model S P90D.
All in all, it seems like the next few years will be a make-or-break moment for Tesla. Get your checkbooks ready for preorders.